CO129-533-4 Hong Kong Water Supply Scheme 28-1-1931 - 20-1-1932 — Page 36

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9.

I venture to urge very strongly the

reconsideration of Your Lordship's view regarding the

financing of the construction of a new Geol.

I

The work therefore should be

It

fully appreciate that as a general principle loans should be confined, as far as possible, to works of a reproductive nature, but this has not been a rigad rule, and I think that there is justification for permitting this work to be paid for out of lom. is a work of the greatest urgency: the conditions in the present gaol are very bal indeed, and the impossibility of properly segregatin, certain types of prisoners has led to a great deal of trouble during

the past few months. taken in hand at once, and not avait the imposition of further taxation vo ncet the cost. In the next place,

I submit that it is not unreasonable that the cost of

such an institution should be spread over a longer term

of years.

The life of the new buildin; will probably

be at least sixty years, while the sinking fund on the

loan, from which I submit it should be paid, will effect repayment in 28 years. I would further point

out that, if additional taxation be imposed to cover the cost, it will mean that we shall have to impose taxation amounting to 25. more than the actual cost, owing to the

fact that such additional revenue will be liable to

military contribution. It is extimated that the gaol will cost $4 millions, to be spent at the rate of

$1,500,000 a year. To meet this expenditure by extra taxation would mean the raising of an additional $1,375,000 a year, a burden which I consider too heavy

for